|Crude oil inventories (weekly change)||10.9M barrels||4.8M barrels|
|Gasoline (weekly change)||0.8M barrels||-4.3M barrels|
|Distillates (weekly change)||-0.3M barrels||1.3M barrels|
Oil inventories are up sharply for a 13th straight week, up a very heavy 10.9 million barrels in the April 3 week to 482.4 million barrels which is yet another 80-year high. The giant build is the result of increasing imports together with increasing domestic production.
On the product side, inventories of gasoline are also bloated, up 0.8 million barrels to a 229.9 million level that is well above the upper limit of their average range. But distillate inventories, down 0.3 million barrels to 126.9 million, are in the lower half of their average range.
WTI oil is reacting very strongly right now to the latest build in oil, down more than $1 to $50.75.
The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S., whether produced here or abroad. The level of inventories helps determine prices for petroleum products.
Petroleum product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this will lead to increases in crude oil prices - or price increases for a wide variety of petroleum products such as gasoline or heating oil. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for crude oil may not be as strong. If inventories are rising, this may push down oil prices.
Crude oil is an important commodity in the global market. Prices fluctuate depending on supply and demand conditions in the world. Since oil is such an important part of the economy, it can also help determine the direction of inflation. In the U.S., consumer prices have moderated whenever oil prices have fallen, but have accelerated when oil prices have risen.
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